Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

Commercial paper is a type of ?

<p><strong><span> (a)Fixed coupon Bond,</span></strong></p> <p><strong><span>(b)Unsecured short-term debt,</span></strong></p> <p><strong><span>(c)Equity share capital,</span></strong></p> <p><strong><span>(d) Government Bond</span></strong></p>

user-image
Question added by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date Posted: 2014/10/07
Divyesh Patel
by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

(b) Unsecured short-term debt

Subhranshu Ganguly
by Subhranshu Ganguly , Quality Analyst. , WIPRO

(b)Unsecured short-term debt,. Yes I fully agree with Mr Divesh patel. And as this is unsecured that is not secured by any asset it is not that dependable. There has to be a reserve for bad debts that can be written off against the actual amount receaved from such debt.

Malik Khalid Mahmood
by Malik Khalid Mahmood , Regional Finance Manager , Leosons International FZ LLC

b- unsecured short term promissory note

Khan Sohal khan
by Khan Sohal khan , Associate , State Street Syntel Services Pvt Ltd.

B is correct

Rahmat Ullah Khan
by Rahmat Ullah Khan , Administrative Asst , Trojan Holding

B.....

mohamed Hakim CMA CPA Candidate
by mohamed Hakim CMA CPA Candidate , Accounting Manager , Andersen saudi arabia

Number B 

Sara Khan
by Sara Khan , financial and admin assistant , Ministry Of Defence

B

Tanveer Qureshi
by Tanveer Qureshi , Director , Qureshi Associates

I think option B is an appropriate answer.

Kallol Chandra Das
by Kallol Chandra Das , Junior Officer , The Premier Bank Limited

Unsecured short-term debt, usually issued by Blue chip companies.

Alok Urs
by Alok Urs , QATAR. Manager - HR & Project Admin , Kuwait Network Electronic Co W.L.L

Commercial papers means : An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories and meeting short-term liabilities. Maturities on commercial paper rarely range any longer than270 days. The debt is usually issued at a discount, reflecting prevailing market interest rates.

Type of commercial papers

1) Direct Paper-issued by large finance company and bank holding companies directly to the investor.

2) Dealer Paper- also called industrial paper , issued by security dealerson behalf of their corporate customers.(Non financial and smaller companies).

 

**** Commercial paper is cheaper than a bank loan...

Abdul Wahab
by Abdul Wahab , Credit Controller , Takween Advanced Industries

Agree With Sara

More Questions Like This

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.